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Does a change in current assets increase or decrease cash flow?
Wiki User
∙ 11y ago
It depends on the current asset, so the change of current asset might be increase or decrease cash flows.
Wiki User
∙ 11y ago
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What is the effect of a purchase of inventory on account on the current ratio and on working capital respectivelyAssume a current ratio greater than one prior to this transaction?
Purchase of inventory can either be on cash or credit. In the first case, while the value of your inventory would increase, your bank balance would decrease, leading to no change in the current assets and, therefore, no change in the current ratio as well. If goods are bought on credit, while your current assets will increase, so will your current liabilities (as you now owe creditors more), leading to no change in the current ratio, again. Due to the same reasons, whether the purchase was on cash or credit, the working capital also remains the same. If bought on cash, the value of inventory increase while cash decreases, leading to no change in the total current assets and, thus, no change in working capital. If goods are bought on credit, current assets increase and also current liabilities, leading to no change in the working capital, again.
If total assets decreased by 88000 during a period of time and owners equity increased by 65000 during the same period then the amount and direction of the period's change?
If total assets decreased by $88,000 during a period of time and owner's equity increased by $65,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is d. $153,000 decrease
What are the important differences between fixed cost and variable costs?
Fixed costs are costs that do not change in total as the number of units increase or decrease. Examples include rent and utilities expense, manager salaries, etc. However, since the total cost does not change, the individual unit cost does change as units increase or decrease. Variable costs are costs that change in total as the number of units increase or decrease. An example might be direct labor, which increases based on number of hours work. However, total unit cost does not change.
How would decreased tariffs affect the capital account?
A decrease in tariffs lowers the price of imports, so more people will buy imports than goods produced inside the country. This won't change the capital account balance, which is determined by adding domestic assets owned by foreign people, businesses, or governments (like investments, land, stocks, bonds), and subtracting foreign assets owned by domestic people, businesses, or governments. A decrease in tariffs won't directly affect the value of assets held abroad or of foreign assets inside the country.
Is biological asset is a fixed asset?
No, because biological assets constantly change. Examples of biological assets are property, equipment, etc. A fixed asset does not change.
How does the increase or decrease of potential difference affect the flow of the electric current?
Increase or decrease in potential results in the change in direction of the flow of electric current.
What is the effect of a purchase of inventory on account on the current ratio and on working capital respectivelyAssume a current ratio greater than one prior to this transaction?
Purchase of inventory can either be on cash or credit. In the first case, while the value of your inventory would increase, your bank balance would decrease, leading to no change in the current assets and, therefore, no change in the current ratio as well. If goods are bought on credit, while your current assets will increase, so will your current liabilities (as you now owe creditors more), leading to no change in the current ratio, again. Due to the same reasons, whether the purchase was on cash or credit, the working capital also remains the same. If bought on cash, the value of inventory increase while cash decreases, leading to no change in the total current assets and, thus, no change in working capital. If goods are bought on credit, current assets increase and also current liabilities, leading to no change in the working capital, again.
Can you list three ways you can change the current in a circuit?
Increase, decrease, or remove the load <<>> Change the voltage and the current will also change in direct proportion, Ohms law.
Will the resistance of a copper conductor decrease with an increase in the applied voltage?
If all environmental conditions remain constant then the resistance will not change appreciably with applied voltage, but the current will increase. An increase in current will raise the temperature of the conductor which will increase the resistance somewhat.
Will NaOH increase decrease or no change in pH when added to water?
increase
Is 56 to 63 an increase or decrease for percent of change?
An increase of 12.5%
What is the difference between gross working capital and net working capital?
Gross working capital is sum of current assests of a company and does not account for current liabilities. However, Net working capital is difference of Current assets and current liabilities. Net working capital = Current Assets - Current LiabilitiesA change in the total amount of current assets without a change of the amount in current liabilities will result to a change in the amount of net working capital. Similarly, a change in the total amount of current liabilities without an identical change in the total amount of current assets will cause a change in the net working capital.
If total assets decreased by 88000 during a period of time and owners equity increased by 65000 during the same period then the amount and direction of the period's change?
If total assets decreased by $88,000 during a period of time and owner's equity increased by $65,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is d. $153,000 decrease
What is the percent increase from 32 cents to 30cents?
This is a decrease, not an increase. The change is -6.25%
Identify the percent of change as an increase or a decrease. 120 meals to 52 meals Increase Decrease Question 2 Find the percent of change. Round to the nearest tenth of a percent if necessary.?
Identify the percent of change as an increase or a decrease.120 meals to 52 meals
How do you find the percent of an increase or decrease?
% change is the % of increase or % of decrease. % change = (difference of the two values / the original value) x 100% =[(original value - new value)/original value] x 100% % increase -if the value increased % decrease -if the value decreased
How can a number change when it is rounded to the nearest hundreds?
It can increase or decrease
